When facing a new product launch, biopharmaceutical organizations must balance the dueling goals of containing costs and producing a successful launch. To handle these twin pressures, launch leaders need to know two things: What are adequate overall investment levels and how much should they spend at key points pre-launch and during launch year.

To shed light on these elusive, yet critical, questions, Best Practices, LLC has published a new study on launch spend that delivers benchmarks on investment levels during and prior to launch. The study also includes overall investment benchmarks by different product types - specialty, primary care and projected peak revenue - for launch year and each of the three years prior to launch. Investment benchmarks also are presented for products by market entry position, i.e. upstart product in crowded market.

This timely study will help biopharmaceutical leaders develop competitive launch and pre-launch budgets to ensure successful U.S market entry for new products. The study provides quantitative metrics that will help companies chart effective budget strategies and allocate funds for new brands.

KEY TOPICS

Launch investment benchmarks during four budget years leading up to launch

Average launch investment for all products, specialty products and primary care products

Total U.S. investment in each of the three years prior to launch and during launch year

Total launch investment by new product's projected peak revenue (data for launch year and each of the three years prior to launch)

Average launch investment for all products, metabolics products and oncology products

SAMPLE KEY FINDING

Ramp-up Patterns: There are predictable investment and ramp-up patterns that tend to allocate nearly half of total (aggregated, four-year) spend during the three years prior to the Launch Year and half during the Launch Year. On average, specialty products invested 58% of funds in the first three years and 42% in the Launch Year. This contrasts with the ramp-up for primary care products, where 44% of the total was spent before launch and 56% in the Launch Year.

METHODOLOGY

Twenty-seven executives and managers at 23 leading biopharmaceutical companies participated in this benchmarking research. Directors and Vice Presidents make up more than three-quarters of the benchmark class.

If you purchase Best Practice Database document(s), you will have 30 days from the date of purchase to apply some or all of the cost of the document(s) toward the cost of a Full Access Individual, Pharma, Group or University Membership. Write us at DatabaseTeam@bestpracticesllc.com or call Benjamin Gregory at 919-767-9160 if you have any questions.